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Stones Limited crushes limestone at its plant in Mokopane in the Limpopo Province. The entity is listed on the JSE Limited and has a 31
Stones Limited crushes limestone at its plant in Mokopane in the Limpopo Province. The entity is listed on the JSE Limited and has a 31 December year end. The primary crusher machine was purchased on 1 July 2019. The machine was immediately available for use as intended by management. It was estimated that the machine would crush one million tonnes of limestone during its useful life and that there would be no residual value for the machine. The machine crushed 150 000 tonnes of limestone during the current year (2019). Stones Limited estimates that the machine will crush the one million tonnes in five years. Stones Limited uses the units of production method to calculate depreciation. The depreciation is calculated at the end of each financial year. The carrying amount of the machine was R1 360 000 on 31 December 2019. What is the original cost of the machine on 1 July 2019
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